Answer the following questions using the information below:
Mark,owner of Waugh Fiberglass Fabricators is interested in using the reciprocal allocation method.The following data from operations were collected for analysis:
$$\begin{array}{l}
\text { Buigeted manuficturing overhead costs: }\
\begin{array} { l l l }
\text { Flant Maintenance } & \text { PM (Support Dept) } & \$ 350000 \
\text { Data Frocessing } & \text { DP (Support Dept) } & \$ 75000 \
\text { Machining } & \text { M (Operating Dept) } & \$ 225000 \
\text { Capping } & \text { C (Operating Dept) } & \$ 125000
\end{array}
\end{array}$$ Services furnished:
By Plant Maintenance (budgeted labour-hours):
$\begin{array} { l l } \text { to Data Processing } & 3500 \ \text { to Machining } & 5000 \ \text { to Capping } & 8200 \end{array}$

By Data Frocessing (bud geted computer time):

$\begin{array}{ll}
\text { to Flant Maintenance } & 600 \
\text { to Machining } & 3500 \
\text { to Capping } & 600
\end{array}$
-Which of the following linear equations represents the complete reciprocated cost of the Data Processing Department?

Question

Answer the following questions using the information below:
Mark,owner of Waugh Fiberglass Fabricators is interested in using the reciprocal allocation method.The following data from operations were collected for analysis:
 $$\begin{array}{l}
\text { Buigeted manuficturing overhead costs: }\
\begin{array} { l l l } 
\text { Flant Maintenance } & \text { PM (Support Dept) } & \$ 350000 \
\text { Data Frocessing } & \text { DP (Support Dept) } & \$ 75000 \
\text { Machining } & \text { M (Operating Dept) } & \$ 225000 \
\text { Capping } & \text { C (Operating Dept) } & \$ 125000
\end{array}
\end{array}$$ Services furnished:
By Plant Maintenance (budgeted labour-hours):
 $\begin{array} { l l } \text { to Data Processing } & 3500 \ \text { to Machining } & 5000 \ \text { to Capping } & 8200 \end{array}$

By Data Frocessing (bud geted computer time):

$\begin{array}{ll}
\text { to Flant Maintenance } & 600 \
\text { to Machining } & 3500 \
\text { to Capping } & 600
\end{array}$
-Which of the following linear equations represents the complete reciprocated cost of the Data Processing Department?

Quizplus · Accepted Answer

The correct equation is DP = $75 000 + (3500/16 700)PM. This equation represents the complete reciprocated cost of the Data Processing Department because it includes the budgeted manufacturing overhead costs of the Data Processing Department ($75,000) plus the allocated costs from the Plant Maintenance Department (3500/16 700 * PM).

Answer the Following Questions Using the Information Below: Mark,owner of Waugh

Answer the Following Questions Using the Information Below:
Mark,owner of Waugh